The gap in price between houses and flats has hit a 30-year high, as first-time buyers seek out bigger properties.
Houses come with a significant price premium in some areas, but a desire for greater space and leasehold concerns are resulting in buyers moving away from flats.
Read on to learn about the price gap between houses and flats in your region, and for advice on what might happen to property prices as the year progresses.
Houses cost 67% more than flats
The gap in price between houses and flats has hit a 30-year high, according to Zoopla.
As of January, the average price of a house in the UK was £319,500, 67% higher than the average flat price of £191,300.
Zoopla says an imbalance between supply and demand is increasing the size of this gap.
It found that in the first six weeks of 2025, the number of flats on the market rose by 14% year-on-year, but buyer demand increased by just 1%. For houses, supply increased by just 5%, but demand rose by 16%.
The gap has been widening for some time. The table below shows the average house price has risen by 24% in the last five years, compared to just 7% for flats.
Buyers searching for houses rather than flats
Zoopla’s data shows that first-time buyers are overlooking flats in search of bigger properties, with 52% of those outside London in the market for a three-bedroom house, and less than 20% searching for a one or two-bedroom flat.
Buyers are increasingly looking for more space, especially since the pandemic, and are showing a willingness to wait longer to be able to buy a bigger home rather than rushing to buy a flat.
Government data shows 58% of flats are leasehold, meaning concerns about ground rents and service charges are also likely to be a factor, alongside ongoing worries about dangerous cladding and fire safety.
The government is currently in the process of overhauling the leasehold system, but this could take some time. The Property Ombudsman says complaints related to leasehold rose by 67% in 2024.
Houses vs flats in your region
Zoopla also analysed the average values of houses and flats across the UK, highlighting significant regional differences.
The gap in Northern Ireland is just £75,000, while in London it’s a staggering £379,000.
Proportionally, the West Midlands has the biggest price gap, with houses costing £288,200, 2.4 times the £118,400 recorded for flats.
- Find out more: what’s happening to house prices?
What will happen to property prices this year?
Which? tracks data from four house price indices, and all are currently reporting rising prices.
However, the data for this spring is likely to be influenced by changes to stamp duty relief on 1 April, which could result in buyers offering less for properties.
Research by Skipton Building Society shows 32% of first-time buyers will need to pay stamp duty from April, up from the 8% recorded in the last quarter of 2024.
Richard Donnell of Zoopla says: ‘While market activity is on the rise, we expect house price growth to be kept in check over 2025. There has been a sizable increase in homes for sale in the early weeks of the year which is giving buyers greater choice and stronger negotiating power.
‘Higher stamp duty costs for many from April will keep a lid on prices which we expect to increase by 2-2.5%, with above average growth in more affordable markets outside southern England.’
How will the changes impact sellers?
With buyers facing higher tax bills and mortgage rates remaining stubbornly high, sellers will need to price their home competitively to attract interest.
For guidance on setting the right asking price, speak to estate agents with a proven track record of selling similar properties in your area.
To get an idea of asking prices for comparable homes in your local market, enter your postcode on property portals such as Rightmove and Zoopla.
These sites will also tell you how long a home has been on the market and whether it’s been reduced, giving you a good indication of demand in your area.
- Find out more: selling your home – how to set the right asking price